Stabilus (STM) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue increased 14.4% year-over-year to €350.7 million, driven by the first-time consolidation of DESTACO, offsetting organic declines in EMEA and Americas due to lower automotive and commercial vehicle demand.

• DESTACO contributed €48.8 million in revenue with a 19.9% EBIT margin, and its integration is progressing well, including IT migration, procurement synergies, and harmonized processes.

• Cost flexibilization and efficiency programs were expanded globally to counteract volume reductions and labor inflation, with early positive impacts on cost structure.

• Profitability was pressured by lower fixed cost absorption and significant inflation in material and energy costs, only partially recovered from customers.

• Automation and labor cost recovery measures are being implemented, with automation lines now operational in all regions and initiatives 70–75% complete.

Financial highlights

• Q3 FY2024 revenue rose 14.4% to €350.7 million; 9M revenue up 6.8% to €969.6 million, with M&A effects (mainly DESTACO) contributing 17.4% and FX impact €4.6 million.

• Adjusted EBIT for Q3 was €43.1 million (12.3% margin), up 2.9% year-over-year; 9M adjusted EBIT was €115.2 million (11.9% margin).

• Net profit for Q3 grew 12% to €24.3 million, but 9M profit fell 31.7% to €54.5 million due to higher costs and one-off acquisition expenses.

• Free cash flow for Q3 was €37.9 million, normalized after excluding a prior-year extraordinary tax payment; 9M adjusted free cash flow was €77.8 million.

• Net leverage ratio rose to 2.8x, reflecting acquisition financing, with deleveraging a priority.

Outlook and guidance

• FY2024 revenue guidance confirmed at €1.3–1.35 billion, with adjusted EBIT margin of 11.7–12.3%, revised down from previous guidance due to weaker automotive and commercial vehicle demand.

• Q4 expected to show stabilization in sales and margin, with integration costs for DESTACO forecasted at €4–5 million.

• No material recovery anticipated in the final quarter; subdued global automotive and industrial production expected.

• STAR 2030 strategic goals and balanced portfolio shift between automotive and industry reaffirmed.